Sean Andrews
"BTW, how are the rights of Indian citizens somehow distinct or less important than the rights of the Indian State? And why, in this case, should we side with the state instead of of subsistence farmers? "
Well, the policy might be wrong, but insofar as Madhya Pradesh and India is a democracy, they have a right to override the rights of individual property owners, just as the American government does when it obliges people to observe the speed limits.
Should we side with the state instead of subsistence farmers? That rather depends on whether any good was served by the dam, such as electricity or water supplies, and how that rests in the balance with those who were adversely affected.